Determine if goodwill is impaired

Assignment Help Accounting Basics
Reference no: EM13488340

Grier purchased Walters Company several years ago. Walters become a reporting unit of Griers. At the end of 2014, Grier had a net book value of $1.6 million which includes $400,000 of goodwill. A goodwill impairment test is done as part of the year end closing process. Grier estimates the fair value of Walters to be $1.4 million. The fair value of Walters identifiable net assets, excluding goodwill, is $1.3 million.

Required:
1.) Determine if goodwill is impaired

2.) Prepare the journal entry required for the impairment if necessary.

 

Reference no: EM13488340

Questions Cloud

What is wagners research and development expense for 2014 : The company allocated $20,000 in overhead to research and development. What is Wagners' research and development expense for 2014?
Explain a certain liquid has a vapor pressure : A certain liquid has a vapor pressure of 92.0 Torr at 23.0 °C and 251.0 Torr at 45.0 °C. Calculate the value of H°vap for this liquid. What is the original boiling point
What is chambers expense associated with organization cost : Chamber intends to capitalize and amortize intangibles over the maximum allowable period in accordance with generally accepted accounting principles. Based on this strategy, what is Chambers's expense associated with organization costs in 2017?
Good definitions of the cycles : Class, There is a lot to cover this week before the final so even though some students have not gotten involved yet, I want to keep going. You have provided some good definitions of the cycles
Determine if goodwill is impaired : A goodwill impairment test is done as part of the year end closing process. Grier estimates the fair value of Walters to be $1.4 million. The fair value of Walters identifiable net assets, excluding goodwill, is $1.3 million.
State a certain substance has a heat of vaporization : A certain substance has a heat of vaporization of 34.75 kJ/mol. At what Kelvin temperature will the vapor pressure be 4.00 times higher than it was at 289 K
Compute the goodwill associated with the purchase of grafton : What if the purchase price was $69,000 would any goodwill be reported?
Discuss the formation of financial statements : Discuss the formation of financial statements by introducing debit, credit, books of prime entry, accounts and ledgers, trial balance, final accounts and explain and compare appropriate formats of financial statements for difference forms of compa..
What amount should c company record for patent amortization : In early 2021, C Company determined that the patent's economic benefits would last only until the end of 2025. What amount should C Company record for patent amortization in 2021?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Common stock-dividend revenue-zwick company

Zwick Company bought 28,000 shares of the voting common stock of Handy Corporation in January 2006. In December, Hardy announced $200,000 net income for 2006 and declared and paid a cash dividend of $2 per share on the 200,000 shares of outstandin..

  The amount of the direct labor rate variance

The standard costs and actual costs for direct labor for the manufacture of 2,500 actual units of product are as follows:

  Repaying all amounts outstanding

\Natalie is thinking of repaying all amounts outstanding to her grandmother. Recall that Cookie Creations borrowed $2,000 on November 16, 2009, from Natalie's grandmother.

  Statements respect to the stock redemption

Kingbird redeems 200 of Amata's shares for $1,000 per share. Amata paid $300 per share for her Kingbird stock nine years ago. Which of the following statements is correct with respect to the stock redemption?

  Consumer behavior can be stated as activities that people

consumer behavior can be defined as activities that people undertake when obtaining consuming and disposing of products

  Diluted earnings per chare of common stock during 2009 the

during 2009 the ellis corporation had 370000 shares of 20 par common stock outstanding. on january 1 2009 2000 8

  Case study of gordon company

Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2010 and 2011.

  Is olivia liable for any penalties for failure to file

Olivia, a calendar year taxpayer, does not file her 2010 return until December 12, 2011. At this point, she pays the $40000 balance due on her 2010 tax liability of $70000.

  Question-bert farm store

On December 31, 2007, Bert's Farm Store had the following account balances in its accounting system. All year-end adjustments had been entered, but the books had not yet been closed.

  Determine the contribution margin in dollars per unit and

in the month of june angelas beauty salon gave 3500 haircuts shampoos and permanents at an average price of 30. during

  Ending work in process problem

During the period, the Bottling Department completed 60,000 liters, including 3,000 liters of work in process at the beginning of the period. The ending work in process was 5,000 liters. How many liters were started and completed during the period..

  The role of an investor or creditor

Putting yourself in the role of an investor or creditor, suggest the ratios that you believe would provide you with the most important information needed to make accurate predictions about the company's financial condition. Provide a rationale..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd